diff --git a/buildman/manager/ephemeral.py b/buildman/manager/ephemeral.py
index c98cc7ef1..7bcdf3a80 100644
--- a/buildman/manager/ephemeral.py
+++ b/buildman/manager/ephemeral.py
@@ -25,7 +25,7 @@ logger = logging.getLogger(__name__)
 
 
 ETCD_MAX_WATCH_TIMEOUT = 30
-ETCD_ATOMIC_OP_TIMEOUT = 120
+ETCD_ATOMIC_OP_TIMEOUT = 10000
 RETRY_IMMEDIATELY_TIMEOUT = 0
 NO_WORKER_AVAILABLE_TIMEOUT = 10
 DEFAULT_EPHEMERAL_API_TIMEOUT = 20
@@ -186,12 +186,14 @@ class EphemeralBuilderManager(BaseManager):
 
       # If we have not yet received a heartbeat, then the node failed to boot in some way. We mark
       # the job as incomplete here.
-      if not job_metadata.get('had_heartbeat', True):
+      if not job_metadata.get('had_heartbeat', False):
         logger.warning('Build executor failed to successfully boot with execution id %s',
                        execution_id)
 
-        # Take a lock to ensure that only one manager reports the build as incomplete.
-        got_lock = yield From(self._take_etcd_atomic_lock('job-expired', build_job.build_uuid))
+        # Take a lock to ensure that only one manager reports the build as incomplete for this
+        # execution.
+        got_lock = yield From(self._take_etcd_atomic_lock('job-expired', build_job.build_uuid,
+                                                          execution_id))
         if got_lock:
           logger.warning('Marking job %s as incomplete', build_job.build_uuid)
           self.job_complete_callback(build_job, BuildJobResult.INCOMPLETE)
@@ -419,7 +421,6 @@ class EphemeralBuilderManager(BaseManager):
     }
 
     lock_payload = json.dumps(payload)
-
     logger.debug('Writing key for job %s with expiration in %s seconds', build_uuid,
                  self._ephemeral_setup_timeout)
     try:
@@ -427,17 +428,17 @@ class EphemeralBuilderManager(BaseManager):
                                          ttl=self._ephemeral_setup_timeout))
     except (KeyError, etcd.EtcdKeyError):
       # The job was already taken by someone else, we are probably a retry
-      logger.error('Job: %s already exists in etcd, timeout may be misconfigured', build_uuid)
+      logger.warning('Job: %s already exists in etcd, timeout may be misconfigured', build_uuid)
       raise Return(False, self._ephemeral_api_timeout)
     except etcd.EtcdException:
       logger.exception('Exception when writing job %s to etcd', build_uuid)
       raise Return(False, RETRY_IMMEDIATELY_TIMEOUT)
 
+    # Got a lock, now lets boot the job via one of the registered executors.
     started_with_executor = None
     execution_id = None
 
     logger.debug("Registered executors are: %s", [ex.name for ex in self._ordered_executors])
-
     for executor in self._ordered_executors:
       # Check if we can use this executor based on its whitelist, by namespace.
       namespace = build_job.namespace
@@ -474,10 +475,19 @@ class EphemeralBuilderManager(BaseManager):
       # Break out of the loop now that we've started a builder successfully.
       break
 
+    # If we didn't start the job, cleanup and return it to the queue.
     if started_with_executor is None:
       logger.error('Could not start ephemeral worker for build %s', build_uuid)
+
+      # Delete the associated build job record.
+      try:
+        yield From(self._etcd_client.delete(job_key))
+      except (KeyError, etcd.EtcdKeyError):
+        logger.warning('Could not delete job key %s', job_key)
+
       raise Return(False, self._ephemeral_api_timeout)
 
+    # Job was started!
     logger.debug('Started execution with ID %s for job: %s with executor: %s',
                  execution_id, build_uuid, started_with_executor.name)
 
@@ -581,7 +591,10 @@ class EphemeralBuilderManager(BaseManager):
 
   @coroutine
   def job_heartbeat(self, build_job):
-    # Extend the deadline in etcd
+    # Extend the queue item.
+    self.job_heartbeat_callback(build_job)
+
+    # Extend the deadline in etcd.
     job_key = self._etcd_job_key(build_job)
 
     try:
@@ -607,7 +620,6 @@ class EphemeralBuilderManager(BaseManager):
     # to ensure that if the TTL is < 0, the key will expire immediately.
     etcd_ttl = max(ttl, 0)
     yield From(self._etcd_client.write(job_key, json.dumps(payload), ttl=etcd_ttl))
-    self.job_heartbeat_callback(build_job)
 
 
   @coroutine
@@ -616,7 +628,7 @@ class EphemeralBuilderManager(BaseManager):
         was granted and false otherwise.
     """
     pieces = [self._etcd_lock_prefix, path]
-    pieces.extend(*args)
+    pieces.extend(args)
 
     lock_key = os.path.join(*pieces)
     try:
diff --git a/buildman/server.py b/buildman/server.py
index f94ef3a69..fcc909714 100644
--- a/buildman/server.py
+++ b/buildman/server.py
@@ -17,15 +17,14 @@ from buildman.jobutil.buildstatus import StatusHandler
 from buildman.jobutil.buildjob import BuildJob, BuildJobLoadException
 from data import database
 from app import app, metric_queue
-from app import app
 
 logger = logging.getLogger(__name__)
 
 WORK_CHECK_TIMEOUT = 10
 TIMEOUT_PERIOD_MINUTES = 20
 JOB_TIMEOUT_SECONDS = 300
-SETUP_LEEWAY_SECONDS = 10
-MINIMUM_JOB_EXTENSION = timedelta(minutes=2)
+SETUP_LEEWAY_SECONDS = 30
+MINIMUM_JOB_EXTENSION = timedelta(minutes=1)
 
 HEARTBEAT_PERIOD_SEC = 30